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Renewable business energy

Soaring energy prices and record temperatures have put renewables back in the spotlight. Rapidly developing technology means renewable business energy deals have fallen in price in recent years, making them a more viable alternative for businesses looking to cut their bills and carbon footprint. Here's all you need to know.

3 min read

A small business owner stands behind the counter of her florist. A laptop is on the counter and she's discussing renewable energy deals on her phone

What are the benefits of renewable business energy?

In addition to the obvious benefit of protecting the environment, there are a number of other advantages to using renewable energy for your business.

Firstly, you will not be required to pay the Climate Change Levy, which is government charge placed on all business energy bills to encourage lower consumption and reduce commercial greenhouse gas emissions.

Secondly, as traditional energy resources continue to dwindle, prices will fluctuate more often, creating greater instability in the market and in supply. By switching to a renewable energy source, you can completely avoid such problems and future-proof your business against any shortages that may occur.

From a reputational point of view, your business may benefit by being known as a green, environmentally-friendly business, helping position your company more favourably than your rivals.

Finally, there are a variety of subsidies available for businesses looking to convert to renewable energy, many of which can help lower the cost of implementing renewable technology at your business, and make it a more cost-effective and viable option.

How is renewable energy generated?

If you are interested in renewable energy contracts, the first thing you need to decide is what type of renewable energy will best serve your business’s needs.

One of the biggest considerations will be your location, as not all renewable energy is available nation-wide. One of the most popular renewable energy services is wind power.

More suited for businesses with undeveloped land, wind turbines can repay initial outlay costs within just five years, but prices can vary significantly depending on the size. Small wind turbines start at around £10,000, and large ones running up to around £3 million. Clearly, most businesses will never pay anywhere near £3 million for energy, but at the lower end of the scale, a wind turbine can have an incredible impact long-term. Add your energy savings to your exemptions from taxes, and you could be looking at substantial savings.

Solar panels and solar thermal energy are also growing in popularity thanks to how easy they are to install. Solar panels on average cost between £5,000-£10,000, whilst initial solar thermal costs stand around £3,000-£5,000. Similar to wind turbines, over a couple of years this can have a real benefit to your outgoings.

Other renewable energy sources include biomass systems that burn wood pellets, geothermal and ground source heat pumps that use naturally-occurring heat in the ground, as well as hydroelectric power that generates electricity from the flow of water.

What if your business can’t generate its own renewable energy?

Many businesses want to become more environmentally friendly but just don’t have the space or means to install their own renewable energy systems. If this is you, there are still options available.

There are energy suppliers that provide renewable energy – meaning you can still eliminate your dependency on fossil fuels and protect your business from unexpected price changes.

However, it should be noted that such energy suppliers do not always supply energy that is exclusively from renewable sources, and therefore you will need to check with the supplier before entering a contract.

Energy companies are required to publish this information, and it should not be too difficult to learn more about what percentage of their energy is truly renewable.

Furthermore, whilst you will be switching to a renewable energy, the carbon benefit you will see from this in terms of your green tariff can be unclear and is something you will need to investigate. However, suppliers of renewable energy are usually dedicated to environmental improvement and can work as a great first step towards making your business environmentally-friendly.

To find out if a renewable energy deal is right for your business, or to simply switch to a better deal, give our commercial energy team a call on 0800 188 4930.

What are the benefits of renewable business energy?
How is renewable energy generated?
What if your business can’t generate its own renewable energy?

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